Xchanging Solutions Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:35 am

Market Cap	1,220 Cr.
Current Price	110
High / Low	177/102
Stock P/E	41.6
Book Value	29.7
Dividend Yield	29.2 %
ROCE	11.9 %
ROE	2.66 %
Face Value	10.0
PEG Ratio	-3.51

Stock P/E, Current Price, and Intrinsic Value Over Time

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Mudunuru Ltd	24.1 Cr.	7.73	15.6/6.35		0.34	0.00 %	72.9 %	374 %	2.00
Naapbooks Ltd	129 Cr.	144	159/32.3	55.6	20.0	%	17.4 %	13.6 %
IDream Film Infrastructure Company Ltd	1.41 Cr.	93.8	98.0/85.0		295	0.00 %	%	%	10.0
IB Infotech Enterprises Ltd	23.7 Cr.	185	245/110	31.2	16.8	0.54 %	69.9 %	50.5 %	10.0
Hit Kit Global Solutions Ltd	6.87 Cr.	1.48	1.48/0.58	21.5	2.08	0.00 %	1.92 %	1.94 %	2.00
Industry Average	40,136.67 Cr	797.05		97.64	124.35	0.61%	21.70%	62.45%	6.94

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	45	42	43	45	44	43	41	46	44	43	42	44	44
Expenses	32	29	29	31	29	30	33	33	30	32	31	35	33
Operating Profit	13	13	14	14	15	14	8	13	14	12	11	10	11
OPM %	28%	31%	32%	31%	34%	31%	19%	29%	32%	27%	27%	22%	24%
Other Income	2	2	2	2	2	3	2	3	4	6	5	8	6
Interest	0	0	0	0	0	0	0	0	0	0	0	2	2
Depreciation	0	0	0	0	0	0	0	0	0	0	0	0	0
Profit before tax	15	15	16	16	17	17	10	16	17	17	16	16	14
Tax %	27%	-29%	23%	31%	10%	28%	32%	33%	151%	19%	123%	23%	27%
Net Profit	11	19	12	11	15	12	7	11	-9	14	-4	12	11
EPS in Rs	0.95	1.69	1.08	0.99	1.34	1.08	0.62	0.99	-0.81	1.24	-0.32	1.11	0.95

Last Updated: October 7, 2024, 8:50 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	209	243	287	279	307	186	184	182	196	174	174	174	174
Expenses	194	226	286	252	298	160	141	134	140	121	125	128	131
Operating Profit	15	17	1	28	9	26	43	48	55	53	50	47	43
OPM %	7%	7%	0%	10%	3%	14%	23%	26%	28%	31%	28%	27%	25%
Other Income	11	27	36	15	14	16	15	13	16	9	11	22	24
Interest	0	1	1	0	0	0	0	0	0	0	0	2	3
Depreciation	5	5	5	4	3	1	0	1	1	1	1	1	1
Profit before tax	21	39	32	39	20	41	57	59	70	61	60	66	63
Tax %	40%	22%	21%	24%	8%	22%	18%	8%	10%	14%	25%	79%
Net Profit	12	30	25	29	18	32	47	55	62	53	45	14	33
EPS in Rs	1.10	2.72	2.25	2.62	1.64	2.84	4.19	4.91	5.60	4.72	4.03	1.23	2.98
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	1,545%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	77.78%	46.88%	17.02%	12.73%	-14.52%	-15.09%	-68.89%
Change in YoY Net Profit Growth (%)	0.00%	-30.90%	-29.85%	-4.29%	-27.24%	-0.58%	-53.79%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	-3%
5 Years:	-1%
3 Years:	-4%
TTM:	0%

Compounded Profit Growth
10 Years:	-7%
5 Years:	-22%
3 Years:	-40%
TTM:	28%

Stock Price CAGR
10 Years:	11%
5 Years:	14%
3 Years:	1%
1 Year:	-3%

Return on Equity
10 Years:	8%
5 Years:	8%
3 Years:	6%
Last Year:	3%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:32 pm

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	111	111	111	111	111	111	111	111	111	111	111	111	111
Reserves	139	167	193	222	239	272	322	385	444	502	565	243	219
Borrowings	2	2	2	1	1	0	0	2	3	2	1	105	106
Other Liabilities	74	105	103	78	101	84	80	75	67	61	66	64	66
Total Liabilities	326	386	409	412	452	468	513	573	625	676	743	523	502
Fixed Assets	166	166	166	164	161	159	159	161	160	161	160	159	159
CWIP	0	0	0	0	0	0	0	0	0	0	0	0	0
Investments	0	0	0	0	101	122	0	0	0	0	0	0	0
Other Assets	159	220	243	249	190	188	355	412	465	516	583	364	343
Total Assets	326	386	409	412	452	468	513	573	625	676	743	523	502

Reserves and Borrowings Chart

Cash Flow

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	14	34	1	28	38	36	48	46	62	35	42	-12
Cash from Investing Activity +	-13	-6	4	6	8	6	14	24	5	15	34	37
Cash from Financing Activity +	-0	0	0	-1	-1	-1	-0	-1	-2	-1	-0	-232
Net Cash Flow	2	29	5	33	45	42	62	69	65	49	75	-207

Free Cash Flow

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	13.00	15.00	-1.00	27.00	8.00	26.00	43.00	46.00	52.00	51.00	49.00	-58.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	80	70	85	60	55	61	57	41	17	31	16	24
Inventory Days
Days Payable
Cash Conversion Cycle	80	70	85	60	55	61	57	41	17	31	16	24
Working Capital Days	43	6	23	22	-17	-30	-44	-19	-63	-31	-55	-54
ROCE %	11%	13%	7%	12%	6%	11%	14%	13%	13%	10%	9%	12%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%	75.00%
FIIs	0.04%	0.15%	0.24%	0.24%	0.06%	0.11%	0.05%	0.04%	0.11%	0.11%	0.23%	0.09%
DIIs	0.37%	0.37%	0.31%	0.31%	0.31%	0.31%	0.31%	0.29%	0.29%	0.29%	0.29%	0.29%
Public	24.59%	24.48%	24.45%	24.45%	24.63%	24.57%	24.63%	24.68%	24.60%	24.58%	24.47%	24.61%
No. of Shareholders	59,355	58,955	59,940	58,997	58,778	56,672	54,834	52,695	57,671	59,457	71,437	72,997

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	1.23	4.03	4.72	5.60	4.91
Diluted EPS (Rs.)	1.23	4.03	4.72	5.60	4.91
Cash EPS (Rs.)	1.28	4.09	4.80	5.73	5.04
Book Value[Excl.RevalReserv]/Share (Rs.)	31.77	60.70	55.07	49.88	44.53
Book Value[Incl.RevalReserv]/Share (Rs.)	31.77	60.70	55.07	49.88	44.53
Revenue From Operations / Share (Rs.)	15.66	15.66	15.64	17.57	16.36
PBDIT / Share (Rs.)	6.16	5.41	5.56	6.40	5.46
PBIT / Share (Rs.)	6.11	5.36	5.48	6.28	5.33
PBT / Share (Rs.)	5.94	5.35	5.46	6.25	5.32
Net Profit / Share (Rs.)	1.23	4.03	4.72	5.61	4.91
NP After MI And SOA / Share (Rs.)	1.23	4.03	4.72	5.61	4.91
PBDIT Margin (%)	39.32	34.57	35.54	36.43	33.39
PBIT Margin (%)	39.01	34.22	35.02	35.72	32.60
PBT Margin (%)	37.94	34.17	34.92	35.59	32.53
Net Profit Margin (%)	7.85	25.74	30.16	31.89	30.01
NP After MI And SOA Margin (%)	7.85	25.74	30.16	31.89	30.01
Return on Networth / Equity (%)	3.87	6.63	8.56	11.23	11.02
Return on Capital Employeed (%)	14.55	8.67	9.86	12.45	11.86
Return On Assets (%)	2.61	6.04	7.80	9.99	9.54
Long Term Debt / Equity (X)	0.29	0.00	0.00	0.00	0.00
Total Debt / Equity (X)	0.29	0.00	0.00	0.00	0.00
Asset Turnover Ratio (%)	0.27	0.07	0.09	0.09	0.10
Current Ratio (X)	6.09	9.94	8.87	6.62	5.37
Quick Ratio (X)	6.09	9.94	8.87	6.62	5.37
Dividend Payout Ratio (NP) (%)	2439.48	0.00	0.00	0.00	0.00
Dividend Payout Ratio (CP) (%)	2346.98	0.00	0.00	0.00	0.00
Earning Retention Ratio (%)	-2339.48	0.00	0.00	0.00	0.00
Cash Earning Retention Ratio (%)	-2246.98	0.00	0.00	0.00	0.00
Interest Coverage Ratio (X)	36.68	603.10	387.13	274.27	468.15
Interest Coverage Ratio (Post Tax) (X)	8.33	450.00	329.56	241.15	421.77
Enterprise Value (Cr.)	1057.28	78.16	462.18	328.57	24.97
EV / Net Operating Revenue (X)	6.06	0.44	2.65	1.68	0.13
EV / EBITDA (X)	15.41	1.30	7.46	4.61	0.41
MarketCap / Net Operating Revenue (X)	7.23	3.40	5.18	3.68	1.93
Retention Ratios (%)	-2339.48	0.00	0.00	0.00	0.00
Price / BV (X)	3.56	0.87	1.47	1.30	0.70
Price / Net Operating Revenue (X)	7.23	3.40	5.18	3.68	1.93
EarningsYield	0.01	0.07	0.05	0.08	0.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 42.46

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Overvalued by 61.40% compared to the current share price 110.00

Intrinsic Value of as of December 22, 2024 is: 37.43

Calculation basis:

Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Overvalued by 65.97% compared to the current share price 110.00

Last 5 Year EPS CAGR: -11.85%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of -18.25, which is a positive sign. The company has higher reserves (300.92 cr) compared to borrowings (17.46 cr), indicating strong financial stability. The company has shown consistent growth in sales (213.00 cr) and profit (48.31 cr) over the years.	The stock has a low average ROCE of 10.92%, which may not be favorable. The stock has a high average Cash Conversion Cycle of 49.75, which may not be favorable.

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
1. Net Profit Margin: 7.85%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 14.55% (Industry Average ROCE: 20.73%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 3.87% (Industry Average ROE: 57.44%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. Interest Coverage Ratio (Post Tax): 8.33
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. Quick Ratio: 6.09
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. Stock P/E: 41.6 (Industry average Stock P/E: 77.59)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. Total Debt / Equity: 0.29
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating:

About the Company - Qualitative Analysis

Xchanging Solutions Ltd. is a Public Limited Listed company incorporated on 01/02/2002 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L72200KA2002PLC030072 and registration number is 030072. Currently Company is involved in the business activities of Computer programming activities. Company’s Total Operating Revenue is Rs. 43.85 Cr. and Equity Capital is Rs. 111.40 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
IT Consulting & Software	HP Avenue, 39/40, Electronic City, Bengaluru Karnataka 560100	xchangingcompliance@dxc.com http://www.dxc.com

Management
Name	Position Held
Mr. Nachiket Vibhakar Sukhtankar-	Managing Director & CEO
Mr. Shrenik Kumar Champalal	WholeTime Director & CFO
Mr. Kartik Ganapathy Iyer	Non Executive Director
Mr. Henry D'Souza	Independent Director
Mrs. Nonavinakeri Srinivasaiyengar Rama	Independent Director
Mr. Pankaj Vaish	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹42.46, which is 61.40% lower than the current market price of ₹110.00. The stock has a market capitalization of 1,220 Cr. and recorded a high/low of 177/102 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹219 Cr and total liabilities of ₹502 Cr.

What is the Market Cap of ?

The Market Cap of is 1,220 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 110.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 177/102.

What is the Stock P/E of ?

The Stock P/E of is 41.6.

What is the Book Value of ?

The Book Value of is 29.7.

What is the Dividend Yield of ?

The Dividend Yield of is 29.2 %.

What is the ROCE of ?

The ROCE of is 11.9 %.

What is the ROE of ?

The ROE of is 2.66 %.

What is the Face Value of ?

The Face Value of is 10.0.